There is a need for government regulation because, without government regulation, a state or nation would be in anarchy. Government regulation controls the order and flow of things within and out of a country.
If government regulations did not exist, then citizens would have no reason to not commit crimes such as robbery and murder. But because there are regulations, citizens deter from these crimes in order to have a future.
Some limits that need to be placed on these regulations include making some penalties less harsh and to control the power given to those in power. Some people who have too much power can become a tyrant, and when that type of leader is formed, the nation will still fall into anarchy.
Hope this helps!